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UNIVERSITY OF SALFORDFINANCIAL REGULATIONS

INDEX

A INTRODUCTION AND GENERAL PROVISIONS

1. Background 2. Status of Financial Regulations

B CORPORATE GOVERNANCE

3. Council 4. Designated Officer 5. Committee structure 6. Lead Members 7. Audit Requirements 8. Data Quality and Assurance 9. Value for Money 10.Other Officers and Senior Managers with Financial Responsibility 11.Risk Management 12.Theft, fraud, bribery and corruption 13.Public Interest Disclosure (Whistle-blowing) 14.Code of Conduct 15.Receiving gifts or hospitality

C FINANCIAL MANAGEMENT AND CONTROL

16.Financial Planning 17.Master Plan 18.Overseas Activity 19.Other Major Development 20.Financial Control 21.Accounting Arrangements 22.Document Retention 23.Taxation 24.Treasury Management

D INCOME

25.General 26.Maximisation of Income 27.Receipt of cash, cheques and other negotiable instruments 28.Collection of Debts 29.Student Fees 30.Student Loans 31.Research Grants and Contracts 32.Other Income Generating Activity 33.Off-site collaborative provision (franchising) 34.European Union (EU) and other matched funding 35.Specific and earmarked accounts 36.Additional payments to staff 37. Intellectual Property Rights and Patents


38.Gifts, benefactions and donations 39.Voluntary funds

E EXPENDITURE

40.General 41.Segregation of duties 42.Scheme of delegation/financial authorities 43.Pay Expenditure 44.Pension schemes 45.Severance and other non-recurring payments 46.Procurement 47.Purchase orders 48.Purchasing cards and institution credit cards 49.Tenders and quotations 50.Capital and Major Refurbishment Contracts 51.EU regulations 52.Receipt of goods or services 53.Payment of invoices 54.Staff reimbursement 55.Petty cash 56.Other payments 57.Late payment rules 58.Giving hospitality

F ASSETS

59.General 60.Safeguarding assets 61.Stocks and stores 62.Personal use 63.Asset disposal

G OTHER

64. Insurance 65.Companies and joint ventures 66.Security 67.Student’s Union 68.Use of the University seal 69.Provision of indemnities

APPENDIX A The Seven Principles of Public LifeAPPENDIX B Summary of Protocols for Proposed Major Developments

As Amended 3 December 2015


A INTRODUCTION AND GENERAL PROVISIONS

1. Background

1.1. The University of Salford is a chartered corporation and received its Royal Charter in 1967 having previously been the Royal College of Advanced Technology, Salford. The University merged with the Northern College of Nursing and Midwifery in April 1996 and with University College Salford in August 1996. Its structure of governance is laid down in the instruments of its incorporation, the Charter and Statutes, which can only be amended by the Privy Council. The Charter was last amended in July 2010 and the Statutes in October 2013. The University is accountable through its governing body (Council), which has ultimate responsibility for the University’s management and administration.

1.2. The University of Salford is an exempt charity by virtue of the Charities Act 1993 and does not therefore have to register with the Charity Commissioners.

1.3. The Memorandum of Assurance and Accountability between the funding body (Higher Education Funding Council for England, “HEFCE”) and the University sets out the terms and conditions on which grant is made. The Council of the University is responsible for ensuring that conditions of grant are met. As part of this process, the University must adhere to HEFCE’s Accountability and Audit: HEFCE Code of Practice, which requires it to have sound systems of financial and management control. The HEFCE Assurance and Institutional Risk Service reviews the systems of internal control, corporate governance and risk management within the University. The Financial Regulations of the University form part of this overall system of accountability.

1.4. Compliance with the Financial Regulations is compulsory for all staff of the University and its subsidiary [holdings of share capital greater than 50%] undertakings. Staff who fail to comply with the Financial Regulations may be subject to disciplinary action under the University’s disciplinary policy. Contractors to the University are also expected to comply where relevant; failure may result in termination of contracts or other penalties. Council will be notified of any breaches of Financial Regulations through the Audit and Risk Committee.

2. Status of Financial Regulations

2.1. This document sets out the Financial Regulations of the University of Salford. It translates into practical guidance the University’s broad policies relating to financial control. The University Council approved this document in November 2009 to apply to the University and all its subsidiary undertakings (“the University”). The current version of the Financial Regulations were approved by Finance and Resources Committee in September 2015.

2.2. These Financial Regulations are subordinate to the University’s Charter and Statutes and to any restrictions contained within the Memorandum of Assurance and Accountability with the Higher Education Funding Council for England including the Audit Code of Practice published as Annex A of the Memorandum.


2.3. The purpose of these Financial Regulations is to provide control over the totality of the University’s resources and provide management with assurances that the resources are being properly applied for the achievement of the University’s strategic plan and business objectives including:

financial viability achieving value for money fulfilling its responsibility for the provision of effective financial controls over

the use of public funds ensuring that the University complies with all relevant legislation safeguarding the assets of the University

2.4. Throughout this document reference to Pro-Vice Chancellors, Executive Directors, Deans of Schools or other budget holders is deemed to include directors of professional services and others with responsibility for the management of a budget unit. It is the responsibility of all budget holders to ensure that their staff are made aware of the existence and content of the University’s Financial Regulations.

2.5. The Finance and Resources Committee (FRC) is responsible for maintaining a continuous review of the Financial Regulations, through the Director of Finance, and for advising Council of any material additions or changes necessary. The University’s Scheme of Delegation authorises the Director of Finance, in consultation with the Chief Operating Officer, to approve such minor amendments as are necessary to ensure the Regulations are responsive to operational requirements.

2.6. The University’s financial procedures set out in more detail how these Regulations will be implemented and are contained in documentation and guidance notes available on Finance Services' website:

http://intranet.salford.ac.uk/finance/cms/pages/finance_doc

B CORPORATE GOVERNANCE

3. Council

3.1. The Financial Regulations are subject to the University’s scheme of corporate governance as set out in the Charter, Statutes and supporting Ordinances.

http://intranet.salford.ac.uk/finance/cms/pages/finance_doc


3.2. The corporate governance of the University is predicated on a clear distinction between ‘governance’ and ‘management’. In this context, ‘governance’ is defined as the process of making decisions that define expectations, grant authority and verify performance. ‘Management’, is the process of directing and controlling an entity for the purpose of coordinating that entity towards accomplishing a goal including the deployment and direction of human, financial, physical and technological resources.

3.3. Under article 9 of the University Charter, the Council is the supreme governing body of the University, responsible for the management and administration of the revenue and property of the University and for the conduct of the affairs of the University, with the power to delegate its powers as provided in the Statutes.

3.4. The University’s Financial Statements, published annually, contain a Statement of the Primary Responsibilities of Council, the detailed functions and duties of which may further be consulted at:

http://www.governance.salford.ac.uk/page/council_fm

3.5. Council’s financial responsibilities are:

a) Ensuring the solvency of the University group and safeguarding its assets. b) Shaping the development of and approving the financial strategy and the

overall annual budget, and ensuring its congruence with the overall University strategy.

c) Ensuring that the funds provided by the Funding Council (HEFCE) are used in accordance with the terms and conditions specified in the HEFCE Memorandum of Assurance and Accountability.

d) Considering and approving annual accounts. e) Ensuring that, subject to relevant legislation, appropriate arrangements are

in place for the management and operation of such companies as are wholly or partly owned by the University.

f) Acting as a trustee for any property, legacy, endowment, bequest or gift in support of the welfare of the University.

3.6. In carrying out the above responsibilities Council governs and regulates the finances, accounts, investments, property, business and all affairs of the University. Council exercises the power afforded to the University under Article 4 of its Charter to invest and borrow money on behalf of the University and to acquire, own, maintain and dispose of real estate and other property.

4. Designated Officer

4.1. The principal academic and administrative officer of the University is the Vice-Chancellor who has a general responsibility to Council for maintaining and promoting the efficiency and good order of the University (Statutes, 3.4). Under the terms of the Memorandum of Assurance and Accountability between the University and HEFCE, the Vice-Chancellor is the Designated Officer of the University and may be summoned to appear before the Public Accounts Committee of the House of Commons.

http://www.governance.salford.ac.uk/page/council_fm


4.2. In the capacity of Designated Officer, the Vice-Chancellor must advise Council if, at any time, any action or policy under consideration by it appears to the Vice-Chancellor to be incompatible with the Memorandum of Assurance and Accountability. If Council decides nevertheless to proceed, the Vice-Chancellor must immediately inform the chief executive of HEFCE in writing.

4.3. The Vice-Chancellor must ensure that annual estimates of income and expenditure are prepared for consideration by Council and for the management of budgets and resources within the estimates approved by Council.

To assist in and advise on the strategic and operational management of the University, the Vice Chancellor has established a University Management Team which comprises senior managers including the Chief Operating Officer and the Director of Finance.

5. Committee Structure

5.1. The University Council has established the following standing committees:

a) Audit and Risk Committee (ARC)

Audit and Risk Committee is responsible to Council for the adequate and effective risk management, control and governance (including ensuring the probity of the financial statements and the effective management and quality assurance of data submitted to funding bodies) and for the economy, efficiency and effectiveness of the Institution’s activities. The Committee provides advice and recommendations to Council on the appointment of both external and internal auditors and meets with the University’s internal and external auditors in attendance. Senior officers, including the Chief Operating Officer and the Director of Finance, attend meetings but are not members of the Committee. Once a year, members of the Committee meet the internal and external auditors for discussion without officers present. The Committee considers detailed reports including recommendations regarding the University’s internal control systems, and management reports from HEFCE as they affect the University’s business, and monitors adherence to regulatory requirements. The Committee, in a joint session with Finance and Resources Committee, reviews the University’s annual financial statements prior to consideration by Council.

On an annual basis, Audit and Risk Committee submits a report for approval by Council. The report covers risk management, value for money and quality assurance of data. The internal auditors also submit an annual report for consideration and approval by Audit and Risk Committee. The Committee’s role in risk management is explained further in section 10 below.

The terms of reference and membership of Audit and Risk Committee can be found at:http://www.governance.salford.ac.uk/page/Audit_TRM

http://www.governance.salford.ac.uk/page/Audit_TRM


b) Finance and Resources Committee (FRC)

Finance and Resources Committee is responsible to Council for considering the effective and efficient use of human and physical resources (estates and information technology), financial performance and sustainability. The Committee ensures compliance with HEFCE financial requirements and obligations and makes recommendations to Council regarding:

the Annual Finance Statement and related documents (HEFCE financial returns and forecasts including TRAC)

three year budgets for the University Group including capital budget and associated cash flow

the adoption of Financial Regulations the adoption of relevant policies, including Treasury Management and

Investment borrowing policy, including approval of new borrowings capital expenditure plans in excess of £5 million fees chargeable by the University.

Membership of the FRC includes Council’s Lead Members for Finance, Estates, Human Resources and Information and Communications Technology who liaise with Executive Directors of key business areas to seek assurance for FRC and Council that decisions arising from the business area are sound and aligned to corporate strategy.

The terms of reference and membership of Finance and Resources Committee can be found at:

http://www.governance.salford.ac.uk/page/Finance_and_Resources_ToR

c) Governance and Nominations Committee (GNC)

Governance and Nominations Committee advises Council on its membership and representation on other internal and external bodies and the operation and effectiveness of corporate governance arrangements. The terms of reference and membership of the Committee can be found at:

http://www.governance.salford.ac.uk/page/Nomination_TRM

d) Remuneration Committee

Remuneration Committee determines the remuneration of senior staff of the University. The terms of reference and membership of the Committee can be found at:

http://www.governance.salford.ac.uk/page/Remuneration_TRM

e) Student Experience Committee (SEC)

http://www.governance.salford.ac.uk/page/Remuneration_TRM

http://www.governance.salford.ac.uk/page/Nomination_TRM

http://www.governance.salford.ac.uk/page/Finance_and_Resources_ToR


Student Experience Committee reviews the student experience to be assured that it meets agreed KPIs and national benchmarks.

http://www.governance.salford.ac.uk/page/student_experience_committee

6. Lead Members

6.1. In addition to the Committee structure outlined above, Council has authorised the appointment of Lead Members to provide it with a governance mechanism of dual assurance addressed to key business areas. Areas currently covered by Lead Members are: Finance, Estates, Human Resources, Information and Communications Technology, International and Equality & Diversity.

6.2. On behalf of the Council, Lead Members work with Directors or Executive Directors to ensure that their business area is well managed, that recommendations and decisions are sound and evidence based, have followed appropriate processes, and are aligned to corporate strategy. Finance and Resources Committee provides lead members with an opportunity to meet collectively.

7. Audit Requirements

7.1. The audit framework for the University within which the internal and external auditors operate is set out in the HEFCE Audit Code of Practice established under the Memorandum of Assurance and Accountability between HEFCE and higher education institutions. Both internal and external audit are essential elements of the University’s corporate governance arrangements.

7.2. The University is required by its Memorandum of Assurance and Accountability with the Funding Council and by the HEFCE Audit Code of Practice to appoint an Audit Committee. The University’s Audit and Risk Committee is independent, advisory and reports to Council.

7.3. The appointment of external auditors is subject to a periodic tendering exercise (maximum period of 7 years) but the continued appointment is confirmed annually and is the responsibility of the Council. The Council is advised by the Audit and Risk Committee in this matter. The primary role of external audit is to report on the University’s financial statements and to carry out such examination of the statements and underlying records and control systems as are necessary to reach their opinion on the statements and to report on the appropriate use of funds. Their duties will be in accordance with advice set out in the HEFCE Audit Code of Practice and the Financial Reporting Council’s statements of auditing standards.

7.4. The internal auditors are appointed by the Council on the recommendation of Audit and Risk Committee. The University’s Memorandum of Assurance and Accountability with the Funding Council requires that it has an effective internal audit function and their duties and responsibilities must be in accordance with advice set out in the HEFCE Audit Code of Practice and the Financial Reporting Council’s statements of auditing standards.

7.5. The main responsibility of internal audit is to provide the Council, the Vice-Chancellor and senior management with assurances on the adequacy of the

http://www.governance.salford.ac.uk/page/student_experience_committee


internal control system. The internal audit service remains independent in its planning and operation but has direct access to the Council, the Vice Chancellor and Chair of the Audit and Risk Committee. The internal auditors will also comply with HEFCE’s guidance for internal auditors and with the Chartered Institute of Internal Auditors’ Guidance on Risk Based Internal Auditing.

7.6. External auditors and internal auditors shall have authority to:

access the University’s premises at reasonable times; access all assets, records, documents and correspondence relating to any financial

and other transactions of the University; require and receive such explanations as are necessary concerning any matter

under examination; require any employee of the University to account for cash, stores or any other

University property under his or her control; access records belonging to third parties, such as contractors, when required.

7.7. The University may, from time to time, be subject to audit or investigation by

external bodies such as the funding bodies, National Audit Office, European Court of Auditors, HM Revenue and Customs. They have the same rights of access as external and internal auditors.

8. Data quality and assurance

8.1. Under the Memorandum of Assurance and Accountability and HEFCE Audit Code of Practice, audit committees are required to give assurance on the management and quality of data provided to HEFCE, the Higher Education Statistics Agency (HESA) and other public bodies. The principles of good management of data apply to all internal and external management information.

8.2. It is the responsibility of the Chief Operating Officer, supported by the Director of Finance, to ensure that:

appropriate policies and procedures are in place to secure the quality of financial data recorded and used for reporting;

there are systems and processes in place which secure the quality of data as part of the normal business activity of the University;

there are arrangements to ensure that staff have the knowledge and competence for their roles in relation to financial data quality.

8.3. The Audit and Risk Committee is required to satisfy itself that suitable arrangements are in place for the management and quality assurance of data submitted to funding bodies [including Student Loans Company and Higher Education Statistics Agency] and provides an opinion on the adequacy and effectiveness of these arrangements in an annual report to Council and the Vice-Chancellor.

8.4. Pro-Vice Chancellors, Executive Directors, Deans of School and other budget holders are responsible for ensuring that University policies, procedures, systems and processes in respect of data management are followed.


9. Value for Money

9.1. It is a requirement of the Memorandum of Assurance and Accountability that the Council of the University is responsible for delivering value for money from public funds. It should keep under review its arrangements for managing all the resources under its control, taking into account guidance on good practice issued from time to time by the HEFCE, the National Audit Office, the Public Accounts Committee or other relevant bodies.

9.2. Value for money processes are incorporated within the planning and budgetary cycles, procurement and general management of resources and the Audit and Risk Committee considers an annual statement on Value for Money. In addition, internal audits and/or specific external or internal studies may be conducted within specific areas.

10. Other Officers and Senior Managers with Financial Responsibility

10.1. The Chair of Council is concerned, both formally and informally, with all the major financial and policy-making decisions of the University and works closely with the Vice-Chancellor on broad issues of strategy and development.

10.2. The Chief Operating Officer is responsible to the Vice-Chancellor and the Council for the proper functioning of all aspects of the administration of the University. This includes responsibility for ensuring in liaison with the University Secretary that timely and accurate information on the University's affairs (especially financial affairs) is placed before Council and its committees. The Chief Operating Officer is head of the University’s administration and is responsible for managing the Professional Services of the University excluding any functions which report directly to Pro Vice Chancellors, the Deputy Vice-Chancellor or the Vice-Chancellor.

10.3. Reporting to the Vice-Chancellor, the Director of Finance controls day-to-day financial administration and is responsible for:

the preparation of a Finance Strategy in support of the University’s core objectives;

maintaining proper accounting records which enable the financial position of the University to be monitored and controlled;

preparing annual revenue and capital budgets and financial plans; monitoring and maintaining the liquidity of the University, including the

preparation of cash flow forecasts; preparing management accounts and other information required to monitor

and control expenditure against budgets and ensure prompt collection of income;

preparing the University's annual accounts and other financial statements and accounts which it is required to submit to other authorities;

monitoring the progress of capital developments and associated funding and, where required, securing external borrowing;


continuing to develop and promulgate the accurate costing of all activities in the University and the determination of prices which result in an adequate return on the resources consumed;

ensuring a cost-efficient, value for money approach is taken to procurement throughout the University;

providing advice and guidance on taxation related matters; ensuring that proper arrangements are in place to operate and monitor

treasury management activities including the use of effective performance measures;

ensuring that the University maintains satisfactory financial systems; providing professional advice on all matters relating to financial policies and

procedures; in conjunction with the Chief Operating Officer and the Director of Legal,

Planning and Governance (in his/her role as University Secretary), the maintenance of internal audit of the University's affairs and the day-to-day liaison with internal and external auditors in order to achieve efficient processes and exemplary systems of internal check and probity, including resolution of technical financial accounting issues;

ensuring compliance with all financial covenants; ensuring compliance with all external regulatory requirements such as the

HEFCE Memorandum of Assurance and Accountability and HEFCE Audit Code of Practice;

ensuring adequate records are maintained to record the performance of investments of the University and that arrangements are made to review such performances with investment managers from time to time.

10.4. Pro-Vice Chancellors have particular strategic responsibility for their portfolios. Where they have direct management of departments they are responsible to the Vice-Chancellor for financial management and budgetary control for the areas or activities they control (devolved accounting responsibility) and are advised by the Director of Finance in executing their financial duties.

Deans of School are responsible to the Deputy Vice-Chancellor for financial management and budgetary control for the areas or activities they control (devolved accounting responsibility) and are advised by the Director of Finance in executing their financial duties. The Director of Finance will also advise upon and approve the financial systems operating within schools including the form in which accounts and financial records are kept.

10.5. The Executive Director of Human Resources has responsibility for the development and implementation of policy, procedures and strategic planning for University requirements that cover Human Resources. Similarly the Director of Estates and Property Services and IT Services has responsibility for the development of the requirements covering estates and information technology.

10.6. All professional services Directors are responsible to the Chief Operating Officer for financial management and budgetary control for the areas or activities they control (devolved accounting responsibility). They are similarly advised by the Director of Finance in executing their financial duties. The Director of Finance will


also advise upon and approve the financial systems operating within these directorates including the form in which accounts and financial records are kept.

10.7. Accounting procedures will reflect recommended good practice and follow accounting principles determined from time to time by the Director of Finance. Deans of Schools and Directors of Professional Services are responsible for establishing and maintaining clear lines of responsibility within their School/Professional Service etc. for all financial matters. Where resources are devolved within a school or Professional Service to other budget holders, they are accountable to their Deans of schools or Directors of Professional Services for their own budget.

10.8. Deans of School and Directors of Professional Services shall provide the Director of Finance with all such information as may be considered to be required to enable:

· compilation of the University’s financial statements implementation of financial planning implementation of audit and financial reviews, projects and value for money

studies. any other information that the Director of Finance deems necessary in the

discharge of his/her responsibilities.

Such information must be complete, accurate and timely and any issues of interpretation or doubt should be discussed with the Director of Finance.

10.9. All members of staff should be aware and have a general responsibility for the security of the University’s property [both physical and intellectual], for avoiding loss and for due economy in the use of resources. They should ensure that they are aware of the University’s financial authority limits and the values of purchases for which quotations and tenders are required (see detailed financial procedures).

10.10. All members of staff shall make available any relevant records or information to the Director of Finance or his or her authorised representative in connection with the implementation of the University’s financial policies, these financial regulations and the system of financial control.

10.11. All members of staff shall provide the Director of Finance with such financial or other information, as he/she may deem necessary, from time to time, to carry out the requirements of Council.

10.12. All members of staff shall immediately notify the Director of Finance whenever any matter arises which involves, or is thought to involve, irregularities concerning, inter alia, cash or property of the University or which may be considered to contravene the requirements of the Bribery Act as outlined in the University’s Anti Bribery Policy. The Director of Finance shall take such steps, as he/she considers necessary by way of investigation and report (see section 12).

11. Risk Management


11.1. The University acknowledges the risks inherent in its business, and is committed to managing those risks that pose a significant threat to the achievement of its business objectives and financial health.

11.2. The effective management of risk is a key component of good governance, and the University is required to demonstrate to HEFCE that it has in place effective procedures for managing risk at all levels. The University Council has the ultimate responsibility for effective performance and risk management.

11.3. Overall responsibility for day to day performance and risk management is held by the University Management Team. The University Management Team is responsible for monitoring institutional performance, through a set of Key Performance Indicators. The University Management Team reports through the Vice-Chancellor to the University Council.

11.4. The University Management Team is responsible for maintaining the University's register of high level risks which describes the key institutional risks, identifies who is responsible for managing them, and outlines how they are being managed. It is also responsible for ensuring that effective risk management is embedded at all levels of the University.

11.5. The University Management Team reviews the risk register six times per year as a standing agenda item.

11.6. The Audit and Risk Committee of the University Council reviews the most important risks at each meeting and receives the full risk register on an annual basis.

11.7. The internal audit function sets its annual audit plan in accordance with the University’s Strategic Plan and its Risk Register and ensures that part of its work each year includes a review of the risk management arrangements in place, including their effectiveness.

11.8. The University Council reviews the top ten University risks at each of its meetings.

11.9. Major projects, as set out in the capital procedures, will be subject to specific risk assessment as part of the approval process. Large projects requiring significant investment are subject to the University INVESTOR process and reviewed by senior management. INVESTOR is a means of numerically evaluating capital project proposals based on consideration of impact of the proposal on teaching, learning, research and enterprise, student experience, space utilisation and environmental sustainability as well as value for money.

12. Theft, fraud, bribery and corruption

12.1. It is the duty of all members of staff, management and the Council to notify the Director of Finance or the Chief Operating Officer immediately whenever any matter arises which involves, or is thought to involve, irregularity, including fraud, bribery, corruption or any other impropriety. The Director of Finance/Chief


Operating Officer shall immediately invoke the ‘Counter Fraud Policy and Response Plan’ approved by the Audit and Risk Committee in January 2015.

12.2. Any incident involving significant fraud [Upwards of £25,000] will be reported without delay to the Vice-Chancellor who shall inform the Chair of Council.

12.3. Any significant cases of fraud or irregularity shall be reported to the Funding Council in accordance with their requirements set out in the Audit Code of Practice

12.4. If the suspected fraud is thought to involve the Director of Finance and/or the Chief Operating Officer, the member of staff shall notify the University Secretary and General Counsel directly of their concerns regarding irregularities.

12.5. The University’s policy and response plan can be found on the University website at:

http://intranet.salford.ac.uk/finance/cms/pages/category?id=23

13. Public Interest Disclosure (Whistle blowing)

13.1. Whistle blowing in the context of the Public Interest Disclosure Act is the disclosure by an employee (or other party) about malpractice in the workplace.

13.2. The full procedure for whistle blowing is set out in the University’s Whistle Blowing Policy, which is published online at

http://www.salford.ac.uk/__data/assets/pdf_file/0009/487989/WhistleBlowingPolicy.pdf

14. Code of Conduct

14.1. The University is committed to the highest standards of openness, integrity and accountability. It seeks to conduct its affairs in a responsible manner, having regard to the principles established by the Committee of Standards in Public Life (formerly known as the Nolan Committee), which members of staff at all levels are expected to observe. These principles are set out at Appendix A. In addition, the University expects that staff at all levels will observe its code of conduct, contained in its detailed financial procedures, which covers:

probity and propriety selflessness, objectivity and honesty relationships

14.2. All members of Council and Senate, their committees, the Vice Chancellor’s Executive Team and University Management Team, all managers reporting to members of the University Management Team, the University Professoriate must complete a Declaration of Interests Form as required in the University’s Management of Conflicts of Interests Policy. Additionally any other members of University staff, who, in their normal role, are required to purchase goods or





services on behalf of the University, or are involved in associated decision making processes, and who believe they have or may have a conflict of interest should also complete a Declaration of Interests Form.

14.3. In particular, no person shall be a signatory to a University contract where he or she or close family member also has an interest in the activities of the other party.

15. Receiving of giving gifts or hospitality

15.1. It is an offence under the Bribery Act 2010 for members of staff to accept or give any gift or consideration as an inducement or reward for doing, or refraining from doing, anything in an official capacity or showing favour or disfavour to any person in an official capacity. The guiding principles to be followed by all members of staff must be:

the conduct of individuals should not create suspicion of any conflict between their official duty and their private interest;

the action of individuals acting in an official capacity should not give the impression (to any member of the public, to any organisation with whom they deal or to their colleagues) that they have been (or may have been) influenced by a benefit to show favour or disfavour to any person or organisation.

15.2. Thus, members of staff should not accept any gifts, rewards or hospitality (or have them given to members of their families) from any organisation or individual with whom they have contact in the course of their work that would cause them to reach a position whereby they might be, or might be deemed by others to have been, influenced in making a business decision as a consequence of accepting such hospitality. The frequency and scale of hospitality accepted should not be significantly greater than the University would be likely to provide in return.

15.3. When it is not easy to decide between what is and what is not acceptable in terms of gifts or hospitality, the offer should be declined or advice sought from the Director of Finance. For the protection of those involved, the Directorate of Legal, Planning and Governance maintains on its website a register of gifts received for all staff where the value is in excess of £25, and of hospitality received where the value is in excess of £100. These limits apply both to single gifts and to the cumulative total of three gifts or more received within a rolling period of 12 months from the same source. The information is regularly cascaded to Deans of School and Heads of Professional Services.

15.4. Best practice requires that all gifts or instances of hospitality are declared, even if below the limits set out in 15.3 above, and this is mandatory for all members of the University Management Team.

15.5. Members of staff in receipt of such gifts or hospitality are obliged to register such gifts using the online form at http://www.governance.salford.ac.uk/gifts

http://www.governance.salford.ac.uk/gifts


15.6. The Director of Legal, Planning and Governance shall be responsible for maintaining a comprehensive list of all such instances of gifts and/or hospitality which shall annually be presented to the Audit and Risk Committee.

15.7. The University’s policy in respect of anti-bribery and the response plan in respect of theft, fraud, bribery and corruption can be found on the University’s web site at:


C FINANCIAL MANAGEMENT AND CONTROL

16. Financial Planning

16.1. Three year forecast – The Director of Finance is responsible for preparing annually a rolling three-year financial plan for approval by the University Council on the recommendation of the VCET and for preparing financial forecasts for submission to the Funding Council. Financial plans should be consistent with the strategic plans approved by the Council.

16.2. The Finance and Resources Committee will, from time to time, assist in providing input into financial targets for the University. These will help the Director of Finance in preparing more detailed financial plans for the University.

16.3. Annual Budget – The Director of Finance is responsible for preparing annually a three year revenue budget and capital programme for consideration by the Vice Chancellor’s Executive Team before submission to the Council. The budget should also include cash flow forecasts for the year and a projected year-end balance sheet.

16.4. The University budget will be underpinned by individual budgets prepared by Deans of Schools and Directors of Professional Services and other budget holders.

16.5. The University allocates costs and income in line with service delivery. Directors of Professional Services, Deans of Schools and other budget holders are responsible for the economic, effective and efficient use of all resources.

16.6. During the year, the Director of Finance is responsible for submitting revised budgets (forecasts) to the Vice Chancellor’s Executive and University Management Teams for consideration before submission to the Council for approval.

17. Capital and Infrastructure Planning

17.1. The nature of capital and infrastructure planning is that a much longer-term strategy and associated plan are necessary. The University’s Strategic Plan emphasises the major strategic objectives of the University and has informed the development of the Estates Campus Plan, which includes the approach to financing capital and infrastructure developments.

17.2. The Estates Campus Plan was approved by the University Council in 2014 and has been submitted to HEFCE for information. It will be kept under regular review to



take account of the longer-term financial context for the University and the Higher Education sector.

17.3. The University’s dual assurance model provides for accountability, responsibilities and input for lay-members of Council, management and members of staff/students.

17.4. Within the overall context of the Estates Campus Plan, a specific five year plan will be developed annually covering the major building and IT developments planned,

including refurbishments, their timings, and budgets or estimates for projects not yet approved. The Plan will include the constituent elements that resource capital and infrastructure developments, to include external capital funding from HEFCE and other public sources, external benefactions/donations etc. and internal infrastructure charges on Schools. This Plan will be rolled forwards and refreshed every year on current planning parameters.

17.5. The Vice-Chancellor’s Executive Team has set up a Strategic Investment Group (SIG)to consider applications for funding in accordance with the Estates Campus Plan and to prioritise recommendations for investment to the University Management Team. SIG will also take a primary role in monitoring the successful delivery of the Capital projects approved, to budget and time.

17.6. Capital and infrastructure income and expenditure plans will be incorporated in the financial planning and monitoring data provided to the Vice Chancellor’s Executive and University Management Teams and Council. These plans will be over the same three year period as the revenue planning process and their impact on the revenue performance of the University will be incorporated into consolidated income and expenditure account, balance sheet, cash flows, the Schools and Professional Services performance, and University reserves.

17.7. The inclusion of a project or programme within the University’s budget does not itself necessarily lead to it being authorised, rather it ensures that a financial provision has been made to fund it, subject to it being subsequently authorised.

18. Overseas Activity

18.1. In planning and undertaking overseas activity, the University must have due regard to the relevant guidelines issued by the Funding Council.

18.2. Prior to any commitment to any party, consultation with the legal and finance departments must be undertaken. In addition, consideration should be given to whether the activity needs to be submitted to the Ethics committee.

18.3. Following this review, the authority limits are set out in Section 4 for the Delegated Authority Limits policy

19. Other Major Development

19.1. The creation of any new legal entity or an acquisition of equity holding in an existing legal entity must be reviewed by the board of University of Salford Enterprises Ltd and then approved by Council.


19.2. The establishment of any new academic area is subject to approval by Senate and Council.

19.3. Any new non-academic business activity with a material impact on the University must be approved by Council.

19.4. Appendix B sets out the protocols to enable major developments to be considered for approval. The Director of Finance will confirm the specific information that is required for each proposed development as well as the financial criteria that they are required to meet.

20. Financial Control

20.1. Budgetary Control – The University operates a system of devolved budgetary control. Deans of School, Directors of Professional Services and other budget holders are responsible for the delivery of agreed financial plans and for implementing an effective system of budgetary control, including the regulation regarding budget virements.

20.2. Virements of budgets that involve a transfer between pay and non-pay allocations and vice versa are controlled and monitored by Finance [requiring approval by Director of Finance] and FRC are updated on a quarterly basis.

20.3. Virement of budgets between categories of non-pay expenditure is also not permitted without prior approval from the Director of Finance.

20.4. All virements will result in a variance to the existing budget and will form the basis for part of the monthly finance report to the Vice Chancellor’s Executive and University Management Teams and quarterly report to the University Council prepared by the Director of Finance.

20.5. The control of income and expenditure within an agreed budget is the responsibility of the designated budget holder, who must ensure that day-to-day monitoring is undertaken effectively. The allocation or setting up of a budget is not an authority in itself to spend monies but is merely an appropriation of funds or anticipation of income to a maximum level for any category. All expenditure should only be incurred if it is necessary to meet the agreed targets of the budget holder and should be in accordance with the procurement regulations and expenditure approvals level in force at any time. All expenditure is expected to deliver Value for Money.

20.6. Financial Monitoring – Budget holders will be assisted in their duties by financial management information provided by the Director of Finance.

20.7. Schools and Professional Service areas will prepare, on a monthly basis, a revised forecast outturn for the year, including a commentary on significant variances.

20.8. The Director of Finance is responsible for supplying monthly reports on the University’s finances to the University Management Team.


20.9. The Director of Finance is responsible for supplying a quarterly finance report to the University Council, which has overall responsibility for the University’s finances.

20.10. Changes to the Approved Budget – All such changes to the overall University budget must be approved by the University Council. This will normally be achieved by the receiving and acceptance of the revised year end forecast included in the quarterly finance report from the Director of Finance.

20.11. Treatment of Year End Balances – The University is required to prepare its annual report and accounts in accordance with Financial Reporting Standard 102. In addition, it is obliged to follow the principles set out in the latest Statement of Recommended Practice (SORP) Accounting in Further and Higher Education Institutions in preparing its Annual Report and Accounts. Year end balances can only be carried forward in accordance with these standards.

21. Accounting Arrangements

21.1. The University’s financial year will run from 1 August until 31 July the following year.

21.2. The consolidated financial statements are prepared under the historical cost convention, modified by the revaluation of certain fixed assets and investments, in accordance with applicable accounting standards.

21.3. The financial statements are prepared for the financial year ending 31 July, in accordance with the Statement of Recommended Practice (SORP) Accounting in Further and Higher Education Institutions. They conform to guidance published by the Higher Education Funding Council for England.

21.4. The Director of Finance will review annually with the Vice Chancellor the University’s accounting policies and, in consultation with the external auditors and the, will make recommendations to the Audit and Risk Committee and Finance and Resources Committee in respect of changes as appropriate. As part of the annual approval of the Financial Statements, Council will approve the accounting policies.

21.5. The Director of Finance is responsible for drawing up a timetable for final accounts purposes and will advise staff and the external auditors accordingly.

21.6. The financial statements will be reviewed by a combined meeting of the Audit and Risk Committee and Finance and Resources Committee who have the responsibility for recommending them to Council for approval.

22. Document retention

22.1. The Director of Finance is responsible for the retention of financial documents. These should be kept in a form acceptable to the relevant authorities. The University is required by law to retain prime documents for six years. These include:

official purchase orders; paid purchase invoices;


sales invoices; bank statements; paid cheques; records documenting receipts; payroll records, including part-time lecturers’ contracts;

22.2. Additionally, for auditing and other purposes, other financial documents should be retained for three years or as determined by the funder.

22.3. Members of staff should ensure that retention arrangements comply with any specific requirements of funding organisations such as research bodies, regional development agencies and European funding bodies.

22.4. Under the terms of the Charities Act 2006, Council is required to supply any person with a copy of the University’s most recent financial statements within two months of a request. The Act enables Council to levy a reasonable fee and this will be charged at the discretion of the Director of Finance. The University will also allow members of the public to inspect the financial statements during normal working hours and make a copy available on the University’s website.

23. Taxation

23.1. The Director of Finance is responsible for advising Deans of schools/other budget holders, in the light of guidance issued by the appropriate bodies and relevant legislation, on all taxation issues with the exception of employee’s PAYE and national insurance). Therefore the Director of Finance will issue instructions to Deans of schools/other budget holders on compliance with statutory requirements including those concerning VAT, corporation tax and import duty.

23.2. The Director of Finance is responsible for maintaining the University’s tax records, including those that relate to PAYE and national insurance, making all tax payments, receiving tax credits and submitting tax returns by their due dates as appropriate.

23.4. The Director of Finance and Executive Director of Human Resources are responsible for all aspects in relation to the Pension Schemes operated by the University.

24. Treasury Management

24.1. Treasury management policy – The Director of Finance has responsibility for developing a treasury management policy setting out a strategy and policies for cash management, long-term investments and borrowings. This will require compliance with funding body rules regarding approval for any secured or unsecured loans that go beyond the general consent levels set out in the Memorandum of Assurance and Accountability. The Director of Finance has a responsibility to ensure implementation, monitoring and review of such policies. All such policies shall require the approval of the University Council.

24.2. All executive decisions concerning borrowing, investment or financing (within policy parameters) shall be delegated to the Director of Finance and an appropriate


reporting system to the Vice-Chancellor’s Executive Team and Council shall be set up. All borrowing shall be undertaken in the name of the University and shall conform to HEFCE requirements and be within the powers prescribed in the University’s Charter.

24.3. The Finance and Resources Committee will review on behalf of Council the activities of the treasury management operation.

24.4. Treasury management is undertaken in accordance with the University policy as approved by Finance and Resources Committee.

24.5. Appointment of bankers and other professional advisers – Council is responsible for the appointment of the institution’s bankers and other professional financial advisers (such as investment managers) on the recommendation of the Director of Finance. The appointment shall be for a specified period after which consideration shall be given by the Director of Finance to for the competitive tendering of the service.

24.6. Banking arrangements – The Director of Finance is responsible for liaising with the University’s bankers in relation to its bank accounts and the issue of cheques.

24.7. All cheques shall be ordered on the authority of the Director of Finance, who shall make proper arrangements for their safe custody. Only the Director of Finance may open or close a bank account for dealing with the University’s funds. All bank accounts shall be in the name of the University or one of its subsidiary companies.

24.8. All payments, whether by cheque or by automated transfer on behalf of the University, such as BACS or CHAPS, must be authorised in the appropriate manner and on the basis approved by the VCET.

24.9. Details of the University’s ‘Scheme of delegation’ can be found at:


24.10. Details of authorised persons and limits outside those covered by the ‘Scheme of delegation’ shall be provided for in the University’s detailed financial procedures.

24.11. The Director of Finance is responsible for ensuring that all bank accounts are subject to regular reconciliation and that large or unusual items are investigated as appropriate.

D INCOME

25. General

25.1. The Director of Finance is responsible for ensuring that appropriate procedures are in operation to enable the University to receive all income to which it is entitled. All receipt forms, invoices, tickets or other official documents in use and electronic collection systems must have the prior approval of the Director of Finance.



25.2. Levels of charges for non-regulated academic fees will be approved by the Vice Chancellor’s Executive Team.

25.3. Other fees and prices must be set with due consideration to the Full Economic Cost (FEC) and ensuring a proper system of control and review.

25.4. The Director of Finance is responsible for:

the prompt collection, security and banking of all income received. Ensuring that all grants notified by the funding body and other bodies are received

and appropriately recorded in the University’s accounts Ensuring that all claims for funds, including research grants and contracts, are

made by the due date

26. Maximisation of income

26.1. It is the responsibility of all staff to ensure that revenue to the University is maximised by the efficient application of agreed procedures for the identification, collection and banking of income.

26.2. In particular, this requires the prompt notification to the Director of Finance of sums due so that collection can be initiated.

27. Receipt of cash, cheques and other negotiable instruments

27.1. All monies received within schools and other budget units from whatever source must be recorded by the unit on a daily basis together with the form in which they were received, for example cash, cheques and other negotiable instruments.

27.2. All monies received must be banked or paid to the University Income & Treasury function promptly. The custody and transit of all monies received must comply with the requirements of the University’s insurers.

27.3. All sums received must be paid in and accounted for in full, and must not be used to meet miscellaneous departmental expenses or be paid into the departmental petty cash float. Personal or other cheques must not be cashed out of money received on behalf of the University.

27.4. The University may only receive payments by debit or credit card using procedures approved by the Director of Finance.

27.5. Any member of staff wishing to arrange for payment to be made to the University by the internet should seek guidance from the Director of Finance at an early stage in respect of payments not subject to the University’s internet payment process.

28. Collection of debts

28.1. The Director of Finance should ensure that:

Debtors’ invoices are raised promptly on official invoices, in respect of all income due to the University;


invoices are prepared with care, recorded in the finance system, show the correct amount due and are credited to the appropriate income account;

any credits granted are valid, properly authorised and completely recorded; VAT is correctly charged where appropriate, and accounted for; monies received are posted to the correct debtors account; swift and effective action is taken in collecting overdue debts, in accordance with

the protocols noted in the financial procedures; outstanding debts are monitored and reports prepared for management.

28.2. Only the Director of Finance can implement credit arrangements and indicate the periods in which different types of invoice must be paid.

28.3. The Director of Finance has the authority to write off any debt incurred in the ordinary course of business, except for those having a material impact on the University’s position. The write off of material debts will be referred to Council.

28.4. A summary report of all debt write offs will be presented to the Audit and Risk Committee annually.

28.5. Requests to write off debts must be referred in writing to the Director of Finance.

29. Student fees

29.1. The procedures for collecting tuition fees must be approved by the Director of Finance. In conjunction with the Chief Operating Officer and they are responsible for ensuring that all student fees due to the University are received.

29.2. Any student who has not paid an account for tuition fees owing to the University shall not receive the certificate for any degree, diploma or other qualification awarded by the University until all outstanding debts have been cleared. Such students shall be prevented from re-enrolling at the institution and from using any of the University’s facilities unless appropriate payment arrangements have been made.

29.3. Any student who has not paid an account for any other item will be dealt with in accordance with procedures set by the Director of Finance.

30. Student loans

30.1. Appropriate records will be maintained to support all transactions involving student loans.

30.2. Emergency/hardship loans – The University’s scheme for emergency/hardship loans must be approved by Vice Chancellor’s Executive Team. This will include the maximum assistance that can be given in any individual case. Under no circumstances should payments be made other than in accordance with the approved scheme.

30.3. The Director of Finance is responsible for ensuring the adequacy of the systems in place for:


● approving loans in accordance with the scheme● paying loans that have been approved● recovering loans that have been paid

31. Research Grants and Contracts

31.1. Research can be defined as original investigation, undertaken to gain new knowledge and understanding, which may be directed towards a specific aim or objective. It can use existing knowledge in experimental development to produce new or substantially improved materials, devices, products and processes including design and construction. It excludes routine testing and analysis of materials, components and processes. The definition of research is as outlined in the Frascati principle.

31.2. The term ‘research grant’ is restricted to research projects funded by the UK research councils, charities and the higher education funding bodies.

31.3. All other externally financed research projects are classified as ‘research contracts’.

31.4. Where approaches are to be made to outside bodies for support for research projects or where contracts are to be undertaken on behalf of such bodies, it is the responsibility of the Dean of school to ensure that the financial implications have been appraised by the Director of Finance. This will include obtaining a set of grant terms and conditions from each organisation providing funding to enable appropriate monitoring of compliance.

31.5. The Director of Finance is responsible for ensuring procedures are in place for examination and approval of every formal application for grant as outlined in the scheme of ‘Delegated Financial Authority’ with the PVC for Research & Enterprise ensuring that there is adequate provision of resources to meet all commitments. The Director of Finance should ensure that the full cost of research contracts is established. The research agreement must be in line with the University’s policy with regard to indirect costs and other expenses and taking account of different procedures for the pricing of research projects depending on the nature of the funding body.

31.6. The PVC for Research & Enterprise shall maintain all financial records relating to research grants and contracts and shall initiate all claims for reimbursement from sponsoring bodies by the due date.

31.7. Each grant or contract will have a named supervisor or grant holder and will be assigned to a specific budget holder.

31.8. Control of pay and non-pay expenditure will be contained within the budget centre. The head of the budget centre may delegate day-to-day control of the account to a supervisor or grant holder, but any overspend or under-recovery of overheads is to be the clear responsibility of the budget centre with any loss being a charge on school funds.


31.9. The University has agreed to adopt the principles on costing and pricing recommended by the Joint Costing and Pricing Steering Group (JCPSG). Staff undertaking research activity will maintain the records specified by the Director of Finance to enable compilation of returns to the funding body which meet the requirements of the Transparency Review.

31.10. Full Economic Costing (FEC) overheads will be charged to research activity whether or not the funding arrangements permit full recovery.

31.11. Many grant-awarding bodies and contracting organisations stipulate conditions under which their funding is given. In addition, there are often procedures to be followed regarding the submission of interim or final reports or the provision of other relevant information. Failure to respond to these conditions often means that the University will suffer a significant financial penalty. It is the responsibility of the named supervisor or grant holder to ensure that conditions of funding are met.

31.12. Any loss to the University resulting from a failure to meet conditions of funding is the responsibility of the budget holder, and will be charged against school funds.

32. Other income-generating activity

32.1. All other income-generating activities including CPD, short courses and conferences, services rendered and other trading activities must be self-financing or surplus-generating on a direct contribution basis unless it is intended that an activity is to be launched as a loss leader. If that is the case, the reason for it must be specified and agreed by the Dean of School, and the Director of Finance.

32.2. Short courses – In this context a short course is any course, which does not form part of the award-bearing teaching load of the school. Any staff wishing to run a short course must have the permission of their Dean of School. The course organiser will be responsible to the Dean of school for day-to-day management of the course.

32.3. Services rendered and consultancy – Consultancy is the provision of advisory services rendered by the University and not work carried out for academic purposes. The term ‘services rendered’ includes testing and analysis of materials, components, processes and other laboratory services or the use of existing facilities in order to gain additional information.

32.4. Any staff wishing to undertake consultancy must first discuss this with their Dean of school. Further information and advice on consultancy is provided by the Research and Innovation team or the Enterprise and Development team. They should also make reference to the Personnel policies and procedures for consultancy and outside work.

32.5. Other income-generating activities organised by members of staff must be costed and agreed with the Director of Finance before any commitments are made. Provision must be made for charging both direct and indirect costs in accordance with the University’s costing and pricing policy, in particular for the recovery of overheads.


32.6. At the end of the financial year, these accounts should be reviewed and where appropriate surpluses/deficits accounted for in accordance with the financial procedures. Any unplanned deficits incurred on other income-generating activities will be charged to school funds.

32.7. The University recognises that on occasions a member of staff may wish to undertake consultancy on a private basis .. However before accepting any private consultancy this work must be notified to the employee’s Line Manager. The Line Manager must be assured that the private consultancy is outside of normal working hours and involves no use of the University’s name, facilities, equipment or intellectual property and the University does not accept any obligations or liabilities, financial or otherwise, for work undertaken privately. Further details are given in the University’s Consultancy policy .

33. Off-site collaborative provision

33.1. Any contract or arrangement whereby the University provides education to students away from University premises, or with the assistance of persons other than the University’s own staff or with independent contractors (partner organisations), must be subject to the following procedure:

33.2. There shall be a contract signed by the Chief Operating Officer or Director of Finance and on behalf of any partner organisation that shall comply at least with the funding body model contract (as amended from time to time) in place before any provision is made. Contracts for significant changes in franchising activity shall be approved in advance by VCET.

33.4. The academic form of the contract shall be scrutinised in advance of its operation by the appropriate subcommittee of Senate and approved by VCET.

33.5. The impact of the contract(s) shall be subject to scrutiny by VCET. The format for regular reports shall be as stated in funding body guidance. They shall consider the risk factors associated with the proposed partnership and agree an appropriate entry in the University’s financial forecast.

33.6. Where the partnership would represent a significant departure from the University’s strategic plan, Council shall approve the departure, and the Vice Chancellor shall seek the views of and inform the funding body.

34. European Union (EU) and other matched funding

34.1. Any such project requires approval in accordance with the authority levels set out in the Delegated Financial Authority section prior to any commitment being entered into. Such approval shall be dependent upon the relevant Dean of School being able to demonstrate that eligible matching funds are available and that the project is financially viable by the application of the University’s costing and pricing policy.


34.2. Individual applications for funds in excess of £500,000 shall be the subject of a report by the Vice Chancellor to Council which will set out, amongst other things, the potential risks generated by the project.

34.3. If the University sub-contracts such work to external providers, the PVC Research and Enterprise & Research shall ensure that:

this is on the basis of a written contract that allows for full audit access to detailed records

appropriate monitoring procedures are in place to ensure that the outputs are achieved and the provision is of suitable quality

payments are only made against detailed invoices.

35. Specific and earmarked accounts

35.1. From time to time, the University is awarded grants and funding for specific purposes or programmes. These grants are to be accounted for in separate accounts and the budget holder must ensure that the terms and conditions of these grants are adhered to. Failure to respond to these conditions often means that the University will have to reimburse the sponsors and/or incur financial penalty. The budget holder must also ensure that these accounts are maintained in credit and submit the grant claims on a timely basis.

35.2. Any loss to the University resulting from a failure to meet conditions of funding is the responsibility of the budget holder, and will be charged against the funds of the Budget Centre or Budget Unit.

36. Additional payments to staff

36.1. Any proposal that involves additional payments to staff (over and above salary and other contractual allowances) should only be made in accordance with the policy and procedures for:

consultancy and outside work Intellectual property payment for additional teaching rewarding performance/merit payment scheme acting up allowances

36.2. Any other payments must be authorised by the Dean of School/ Director of Professional Service, or the Chief Operating Officer, and the Executive Director of Human Resources before the additional work is undertaken.

36.3. Consideration must be given to compliance with the code of conduct set out in section 14 of these Regulations and that the payments to staff do not create suspicion of any conflict between their official duty and their private interest.

37. Intellectual Property Rights and Patents


37.1. Certain activities undertaken within the institution including research and consultancy may give rise to ideas, designs and inventions, which may be patentable. These are collectively known as intellectual property.

37.2. The PVC Research & Enterprise is responsible for establishing procedures to deal with any patents accruing to the University from inventions and discoveries made by staff in the course of their research.

37.3. In the event of the University deciding to become involved in the commercial exploitation of inventions and research, the matter should then proceed in accordance with the intellectual property procedures as set out in the University’s Intellectual Property Policy.

38. Gifts, benefactions and donations

38.1. The Director of Advancement is responsible for maintaining financial records in respect of gifts, benefactions and donations made to the institution and initiating claims for recovery of tax where appropriate.

38.2. All philanthropic donations received by schools or services must be notified to Advancement Services including details of the purpose of the donation.

38.3. Conditional donations and gifts with specific terms to maintain the capital sum should be set up as endowment funds. The capital sum will be invested in the University’s pooled investment portfolio. Capital gains/losses and income will be allocated on a pro-rata basis.

38.4. The Director of Advancement is responsible for maintaining a record of the requirements for each endowment fund while the Director of Finance is responsible for appointing investment fund managers.

39. Voluntary funds

39.1. The Director of Finance shall be informed of any fund that is not an official fund of the institution, which is controlled wholly or in part by a member of staff in relation to their function in the University.

39.2. The accounts of any such fund shall be maintained as a “third party account” within the University’s account and shall be subject to the University’s standard financial procedures.

E EXPENDITURE

40. General

40.1. The Director of Finance is responsible for making payments to suppliers of goods and services to the University.

41. Segregation of duties


41.1. All Budget Holders and those with delegated authority are reminded of the need to ensure that there must be appropriate segregation of duties in making financial commitments. In particular:

41.2. that all orders must be raised and therefore approved on the Financial Information System (Agresso). All goods or services must be marked as received on the system after delivery, by a person other than the Purchase Order approver.

41.3. that telephone orders should be avoided or, if utilised, such orders must be confirmed by an official order raised on the Financial Information System (Agresso).

42. Scheme of delegation/financial authorities

42.1. The Directors of Professional Services, Deans of School and other budget holders are responsible for purchases within their areas. Purchasing authority may be delegated by them to named individuals within their area up to the limit of their own authority level which is determined by the University Management Team and approved by the University Council. In exercising this delegated authority, budget holders are required to observe the University’s purchasing policies and financial procedures set out at:

http://www.purchasing.salford.ac.uk/internal/documentation/

42.2. The Director of Finance shall maintain the Financial Information System (Agresso) with persons authorised to approve non-pay expenditure in line with the Delegated Financial Authority Policy.

42.3. Under procedures agreed by the Director of Finance, central control shall be exercised over the creation of requisitioners, buyers and authorisers and their respective financial limits for electronic systems.

42.4. The Director of Finance must be notified immediately of any request for changes to the authorities to commit expenditure.

42.5. Directors of Professional Services and Deans of Schools and other budget holders are not authorised to commit the University to expenditure which is outside the approved Council budget. (See also Delegated Financial Authority Policy 2.3 for non-budgeted expenditure).

42.6. Invoices that match the purchase order within tolerance and the goods have been received on the system will be automatically approved for payment. Tolerance is defined as a price increase of 2.5%. Where an invoice exceeds this tolerance and the value of the increase exceeds £25, the invoice must be approved by the appropriate budget holders or those with delegated authority as outlined in the Delegated Financial Authority Policy.

43. Pay Expenditure


43.1. All University staff will be appointed to the salary scales approved by Remuneration committee and in accordance with appropriate conditions of service. All contracts of service shall be concluded in accordance with the University’s approved personnel practices and procedures and staff may only be appointed in accordance with letters of appointment approved by the University’s Human Resources department.

43.2. The Executive Director of Human Resources will, from time to time, review the remuneration package for all staff in relation to the marketplace and sector. Changes to the benefits or repackaging of the remuneration offer will be submitted to the Remuneration Committee for review and approval.

43.3. Budget holders shall ensure that the Executive Director of Human Resources is provided promptly with all information required in connection with the appointment, resignation or dismissal of employees.

43.4. The Director of Finance is responsible for all payments of salaries and all other payments arising from employment, including individuals engaged under a claims basis. All such payments must be paid through the University payrolls.

43.5. All timesheets and other pay documents, including those relating to fees payable to external examiners, occasional lecturers or researchers, will be in a form prescribed or approved by the Executive Director of Human Resources or the Director of Finance.

43.6. The Executive Director of Human Resources will be responsible for ensuring that the following activities are undertaken effectively, efficiently and in accordance with statutory requirements:

appointments, resignations, dismissals, secondments and transfers; recording absences from duty for sickness or other reason, apart from approved

leave; changes in remuneration

43.7. Engagement and payment of individuals on a self-employed/consultancy (contract for services) basis should be made in accordance with guidance issued by the Director of Finance.

43.8. The Director of Finance is responsible for the information necessary to maintain records for pensions, income tax, national insurance and other pay-related statutory reasons.

43.9. All payments must be made in accordance with procedures issued by Human Resources and comply with HM Revenue and Customs regulations.

44. Pension schemes

44.1. Council is responsible for ensuring appropriate pension arrangements for employees.


44.2. The Director of Finance is responsible for day-to-day pension matters, including:

administering eligibility to pension arrangements; arranging when deductions should begin or cease for staff; paying contributions to various authorised pension schemes; preparing the annual return to various pension schemes; liaison with the pension fund administrators.

45. Severance and other non-recurring payments

45.1. Severance payments and other staff pay legal settlements must be approved in advance by the Director of Finance and the Executive Director of Human Resources.

45.2. The University policy is to adhere to guidance issued by HEFCE from time to time relating to severance payments for senior staff.

45.3. The University policy on severance payments is contained in policy documents approved by Council at the following Human Resources website:

http://www.hr.salford.ac.uk/policies-procedures/?cat=CATred

46. Procurement

46.1. The University requires all budget holders, irrespective of the source of funds, to obtain supplies, equipment and services at the lowest possible lifecycle cost consistent with quality (the required specification), delivery requirements and sustainability, and in accordance with sound business practice and ethics and legal and regulatory restraints. Factors to be considered in determining lowest cost are noted in the guidance from Procurement Services.

46.2. The University Head of Procurement is responsible to the Director of Finance for:

ensuring that the University’s purchasing policy is known and observed by all involved in purchasing for the institution;

advising on matters of University purchasing policy and practice; advising and assisting schools and support services where required on specific

departmental purchases; developing appropriate standing supply arrangements on behalf of the University to

assist budget holders in meeting their value for money obligations; vetting all orders above the limit set in the financial management system before

they leave the University; the drafting and negotiation, by agreement and in collaboration with the

responsible School or other budget unit, of selected high-value purchase contracts (in excess of £25,000) undertaken by the University;

ensuring that the University complies with EU regulations and UK legislation on procurement and related matters.

approving suppliers for which it is not appropriate to raise a purchase order e.g. Utilities Suppliers


47. Purchase orders

47.1. The ordering of goods and services shall be in accordance with the University’s procurement procedures and policies. Any acquisition or purchase, by whatever means (whether by purchase order, contract, purchasing card, letter of intent, or any other means) must only be made by people who are authorised under the relevant procedures.

47.2. All goods and services must be ordered on official University orders through the Financial Information System (Agresso) or Library Information system (Alma) except those made using purchasing cards, company credit cards or petty cash. In exceptional circumstances, urgent orders may be given orally, but must be confirmed by an official purchase order endorsed ‘confirmation order only’ not later than the following working day.

47.3. Purchases under £200 should be made where possible and where cost effective by purchasing card. Petty cash may be used at the discretion of the Dean of school or other budget unit for purchases under £50 where payment by purchasing card is not possible.

47.4. The University Head of Procurement is responsible for ensuring that all purchase orders refer to the University’s conditions of contract or approved alternative conditions.

48. Purchasing cards and institution credit cards

48.1. The operation and control of the University’s purchasing cards is the responsibility of the Director of Finance.

48.2. Institution credit cards are only issued to members of the UMT and nominated senior staff and may not be used for personal expenditure. The Director of Finance is responsible for ensuring compliance with the terms of their issue, including their usage for authorised and approved expenditure and may withdraw them if there is a breach of their terms of issue.

48.3. Holders of purchasing cards are wholly responsible for all charges against their cards. Holders of purchasing cards must use them only for the purposes for which they have been issued and within the authorised purchase limits. Cards must not be loaned to another person, nor should their use be delegated or assigned

to other colleagues. The Personal Identification Number (PIN) must not be disclosed to any other person, nor should they be used for personal or private purchases.

Cardholders must ensure that budget holders and those with delegated budgetary authority approve all credit card purchases at the month end.

48.4. Cardholders must provide the information required by the Purchasing Card Administrator, which is determined by the Director of Finance. Guidance is given in the financial procedures and the purchasing card policy.

49. Tenders and quotations


49.1. Deans of schools and delegated budget holders must comply with the University’s tendering procedures described in the University’s procurement policies, procedures and guidance set out at https/www.purchasing.salford.ac.uk

49.2. The following table sets out the course of action for different threshold levels.

Orders below £1,000: Purchase cards can be used

Orders below £5000: The budget holder to obtain value for money

Orders between £5000 and £25,000: 3 competitive quotes to be obtained by the department prior to placing the order

Orders between £25,000 and £172,514: Tender (please contact the Purchasing Office)

Orders over £172,514: EU Tender (please contact the Purchasing Office)

49.3. The current threshold values are updated by the Procurement Office for legislation changes. Deviation from the University’s threshold table above may only be approved by the Director of Finance, following an application to the Head of Procurement. This does not include orders that are above the EU threshold.

49.4. Funding bodies may impose additional rules pertaining to procurement which must be followed e.g. ERDF

50. Capital and Major Refurbishment Contracts

50.1. All capital and major refurbishment contracts will be authorised and monitored in accordance with the requirements of the Place Renewal Group acting on behalf of the University Management Team.

50.2. Building procurement is subject to procurement procedures and legislation. The threshold values and the associated procedures are available from the Procurement Office. Particular care must be taken to ensure that works and associated services that exceed the EU threshold or which are funded by external grants follow EU regulations.

51. EU regulations

51.1. The University Head of Procurement is responsible for ensuring the University complies with its legal obligations concerning EU procurement legislation. EU procurement regulations apply to written contracts for all forms of procurement, purchase or hire (whether or not hire purchase) with a total value exceeding a threshold value. A breach of these regulations is actionable by a supplier or potential supplier, the EU Commission and possible other parties.

51.2. The EU thresholds are available from the Procurement office.


51.3. Directors of Professional Services, Deans of School and other budget holders are responsible for ensuring that their members of staff comply with EU regulations by notifying Procurement Services of any purchase that is likely to exceed the thresholds. Sufficient time is required to permit the application of the EU tender procedure.

52. Receipt of goods or Services

52.1. All persons receiving goods or services on behalf of the University must be independent of those who approved the official order.

52.2. All goods must be marked as received on the Financial Information System (Agresso) prior to an invoice being paid.

53. Payment of invoices

53.1. The procedures for making all payments shall be in a form specified by the Director of Finance.

53.2. The Director of Finance is responsible for deciding the most appropriate method of payment for categories of invoice.

53.3. Suppliers should be instructed to submit invoices to the central Accounts Payable Team in the Finance Department.

53.4. Care must be taken by the budget holder to ensure that discounts receivable are obtained.

53.5. Payments will only be made by the Director of Finance against invoices that are:

matched to a receipted order on the Financial Information System (Agresso) within tolerance

approved on the Financial Information System (Agresso) where the invoice exceeds tolerance

that have been certified for payment by the appropriate Dean of school or delegated signatory (paper-based system) where no Purchase Order was required.

Certification of an invoice or receipting of an electronic order will ensure that:

the goods have been received, examined and approved with regard to quality and quantity, or that services rendered or work done is satisfactory

where appropriate, it is matched to the order invoice details (quantity, price, discount) are correct the invoice is arithmetically correct the invoice has not previously been passed for payment where appropriate, an entry has been made on a stores record or school inventory an appropriate account code is quoted; this must be one of the account codes

included in the budget holder’s areas of responsibility and must correspond with the types of goods or service described on the invoice.

53. Staff reimbursement


53.1. The University’s purchasing and payments procedures are in place to enable the majority of non-pay supplies to be procured through the creditors system without staff having to incur any personal expense. However, on occasion, staff may incur expenses, most often in relation to travel, and are entitled to reimbursement.

53.2. All claims for payment of subsistence allowances, travel and incidental expenses shall be completed in a form approved by the Director of Finance.

53.3. Regulations relating to the reimbursement of UMT and Senior Officer members’ expenses are contained in the Senior Officer Travel and Expenses Policy available from the Finance Division and for other staff in the Staff Travel and Other Expenses and Benefits policy that can be found at:


54. Petty cash

54.1. Where a single item is for less than £50 and it cannot be by purchasing card,it should be paid from departmental petty cash if possible. It must be supported by receipts or vouchers where available.

54.2. The Director of Finance shall make available to departments such imprest floats as he or she considers necessary for the disbursements of petty cash expenses. However, it is important for security purposes that petty cash imprest floats are kept to a minimum.

54.3. Requisitions for reimbursements must be sent to the Director of Finance’s nominated officer, together with appropriate receipts or vouchers, before the total amount held has been expended, in order to retain a working balance pending receipt of the amount claimed.

54.4. The member of staff granted a float is personally responsible for its safe-keeping. The petty cash box must be kept locked in a secure place in compliance with the requirements of the University’s insurers when not in use and will be subject to periodic checks by the Dean of school or another person nominated by him or her.

54.5. Petty cash records must be maintained in a form prescribed by the Director of Finance and expenditure should be recorded on an imprest accounts basis.

54.6. At the end of the financial year a certificate of the balances held should be completed by the member of staff responsible for the float and counter-signed by the Dean of school/head of service.

55. Other payments

55.1. Payments for maintenance and other items to students on behalf of sponsoring organisations shall be made on the authority of the Director of Finance, supported by detailed claims approved by the Dean of School or PVC Education & Students.

56. Late payment rules


56.1. The Late Payment of Debts (Interest) Act 1998 was introduced to give small businesses the right to charge interest on late payments from large organisations and public authorities. Key points are:

small businesses can charge interest on overdue invoices interest is chargeable on sales made after 1 November 1998 the rate of interest is currently 8% per annum above the official daily rate of the

Bank of England the Act also applies to overseas organisations the institution can be sued for non-payment.

56.2. In view of the penalties in this Act, Council requires that invoices must be passed for payment as soon as they are received.

57. Giving hospitality

57.1. Staff entertaining guests from external companies or individuals ( as defined in the Expenses policy) at lunchtime should normally use the University’s catering facilities. Where this is not the case, reasons must be stated when submitting a claim for reimbursement.

57.2. Further details concerning acceptable expenditure for entertaining guests are set out in the University’s policy on Staff travel and other expenses and benefits.

57.3. The rules that relate to staff leaving parties can be found on the finance website at: http://intranet.salford.ac.uk/finance/cms/pages/category?id=23

F ASSETS

58. General

58.1. The purchase, lease or rent of land, buildings or fixed plant will be undertaken in accordance with procedures set out by the Strategic investment group as approved by the Vice Chancellor’s Executive team.

58.2. The Director of Finance is responsible for maintaining the University’s register of land, buildings, fixed plant and machinery. Directors of Professional Services, Deans of School and other budget holders will provide the Director of Finance with any information he may need to maintain the register.

59. Safeguarding assets


59.1. Executive Directors of Professional Services, Deans of School and other budget holders are responsible for the care, custody and security of the buildings, stock, stores, furniture, cash, etc. under their control. They will consult the Director of Finance in any case where security is thought to be defective or where it is considered that special security arrangements may be needed.

59.2. Executive Directors of Professional Services, Deans of School and other budget holders are responsible for establishing adequate arrangements for the custody and control of all other assets owned by the University, whether tangible or intangible (such as intellectual property), including electronic data.

59.3. Assets owned by the University shall, so far as is practical, be effectively marked to identify them as University property.

59.4. Executive Directors of Professional Services, Deans of School and other budget holders are responsible for maintaining inventories, in a form prescribed by the Director of Finance, for all plant, equipment, furniture and stores in their departments with a cost in excess of £1000. The inventory must include items donated or held on trust.

59.5. Inventories must be checked at least annually as described in the University’s detailed financial procedures.

59.6. When transferring equipment, etc. between departments, a transfer record must be kept and the inventories amended accordingly.

60. Stocks and stores

60.1. Executive Directors of Professional Services, Deans of School and other budget holders are responsible for establishing adequate arrangements for the custody and control of stocks and stores within their schools. The systems used for stores accounting in schools must have the approval of the Director of Finance.

60.2. Executive Directors of Professional Services, Heads of School and other budget holders are responsible for ensuring that regular inspections and stock checks are carried out. Stocks and stores of a hazardous nature should be subject to appropriate security checks.

60.3. Those Executive Directors of Professional Services, Deans of School and other budget holders whose stocks require valuation in the balance sheet must ensure that the stock-taking procedures in place have the approval of the Director of Finance and that instructions to appropriate staff within their schools/services are issued in accordance with advice contained in the University’s detailed financial procedures.

61. Personal use

61.1. Assets owned or leased by the University shall not be subject to personal use without proper authorisation.


62. Asset disposal

62.1. Disposal of land and buildings must take place in accordance with the Capital Planning and Project Approval Procedures agreed by and as recommended to the.

62.2. Disposal of equipment and furniture must be in accordance with procedures agreed by the VCET and contained in the University’s detailed financial procedures.

62.3. The disposal of donated assets must have due consideration to the original terms and restrictions of the donation.

G OTHER

63. Insurance

63.1. The Director of Finance is responsible for the University’s insurance arrangements, including the provision of advice on the types of cover available. As part of the overall risk management strategy, all risks will have been considered and those most effectively dealt with by insurance cover will have been identified. This is likely to include important potential liabilities and provide sufficient cover to meet any potential risk to all assets. This portfolio of insurances will be considered as part of dual assurance processes.

63.2. The Director of Finance is responsible for effecting insurance cover as determined by VCET and approved by Council. He/she is therefore responsible for obtaining quotes, negotiating claims and maintaining the necessary records. The Director of Finance will keep a register of all insurances effected by the University and the property and risks covered. He/she will also deal with the University’s insurers and advisers about specific insurance problems.

63.3. Executive Directors of Professional Services, Deans of School and other budget holders must ensure that any agreements negotiated within their areas with external bodies cover any legal liabilities to which the University may be exposed. The Director of Finance’s advice should be sought to ensure that this is the case. They must give prompt notification to the Director of Finance of any potential new risks and additional property and equipment that may require insurance and of any alterations affecting existing risks.

63.4. Executive Directors of Professional Services, Deans of School and other budget holders must advise the Director of Finance immediately of any event that may give rise to an insurance claim. The Director of Finance will notify the University’s insurers and, if appropriate, prepare a claim in conjunction with the Dean of school for transmission to the insurers.

63.5. The Executive Director of Estates is responsible for keeping suitable records of plant which is subject to inspection by an insurance company and for ensuring that inspection is carried out in the periods prescribed.


63.6. All staff using their own vehicles on behalf of the University shall maintain appropriate insurance cover for business use.

64. Companies, joint ventures and other legal entities

64.1. In certain circumstances it may be advantageous to the institution to establish a company, joint venture or other legal entity to undertake services on behalf of the University. Any member of staff considering the use of a company or a joint venture should first seek the advice of Commercial Services team in Research & Enterprise , who should have due regard to guidance issued by the funding body.

64.2. Council is ultimately responsible for approving the establishment of all companies or joint ventures. Under a memorandum between USE and University, USE will undertake the necessary due diligence including taking regard of any guidance provided by the funding bodies. The process involved in forming a company or a joint venture and arrangements for monitoring and reporting on the activities of these undertakings are documented in the University’s financial procedures.

64.3. It is the responsibility of USE to advise Council on the appropriate shareholding arrangements and to appoint directors of companies wholly or partly owned by the University.

64.4. The Directors of Companies where the University is the majority shareholder must submit regular reports to University of Salford Enterprises Limited who are responsible for governance and monitoring of University company and joint venture activity. The University’s internal and external auditors shall also be appointed to such companies.

64.5. Where the University is the majority shareholder in a company, that company’s financial year shall be consistent with that of the University.

65. Security

65.1. Keys to safes or other similar containers holding cash or other financial information are to be held securely. The loss of such keys must be reported to the Director of Finance immediately.

65.2. The University through the Legal, Planning and Governance Directorate is responsible for the safekeeping of official and legal documents relating to the University. Signed copies of deeds, leases, agreements and contracts must, therefore, be forwarded to the University Solicitor. All such documents shall be held in an appropriately secure, fireproof location and copies held at a separate location.

66. Students’ Union

66.1. The Students’ Union is a separate legal entity from the University but is recognised to fulfil a valuable role in relation to the University’s students.


66.2. The Students’ Union is responsible for maintaining its own bank account and financial records and preparing its own annual financial statements.

66.3. Subject to any constraints imposed by the funding body, Council shall determine the level of grant to be paid annually to the Students’ Union by approving the overall University annual budget. Council requires the Students’ Union to provide, for information, details of its proposed budget to assist in determining the appropriate level of grant.

66.4. In accordance with an agreement between the University and Students’ Union, it will provide quarterly statements of income and expenditure to the Director of Finance for information purposes only.

66.5. At year end the Students’ Union financial statements will be audited by an appropriately qualified firm of auditors and will be presented to the University of Salford Student Union and University of Salford Partnership Steering group.

66.6. In accordance with an agreement between the University and the Students’ Union, the University’s internal auditor shall have access to records, assets and personnel within the Students’ Union in the same way as other areas of the institution.

67. Use of the University’s seal

67.1. Where a deed or document requires the University’s seal, it must be sealed by the University Secretary or the Director of Finance.

67.2. The University Secretary is responsible for submitting a report to each meeting of Council detailing the use of the University’s seal since the last meeting.

68. Provision of indemnities

68.1. Any member of staff asked to give an indemnity, for whatever purpose, should consult the Director of Finance before any such indemnity is given.


A P P E N D I X B : T H E S E V E N P R I N C I P L E S O F P U B L I C L I F E F R O M T H E R E P O R T O F T H E C O M M I T T E E F O R S T A N D A R D S I N P U B L I C L I F E ( T H E N O L A N R E P O R T )

SELFLESSNESS

Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their families or their friends.

INTEGRITY

Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that may influence them in the performance of their official duties.

OBJECTIVITY

In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit.

ACCOUNTABILITY

Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.

OPENNESS

Holders of public office should be as open as possible about all their decisions and the actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.

HONESTY

Holders of public office have a duty to declare any private interests relating to their public


duties and to take steps to resolve any conflicts arising in a way that protects the public interest.

LEADERSHIP

Holders of public office should promote and support these principles by leadership and example.


A P P E N D I X B : S U M M A R Y O F P R O T O C O L S F O R P R O P O S E D M A J O R D E V E L O P M E N T S

The proposal should be supported by a business plan for five years which sets out:

● a demonstration of the proposal’s consistency with the strategic plans approved by Council and with the University’s powers under current legislation;

● details of the market need and the assumptions (based on reference data) of the level of business available;

● details of the business and what product or service will be delivered;

● an outline plan for promoting the business to the identified market and achieving planned levels of business;

● details of the staff required to deliver, promote and manage the business, together with any re-skilling or recruitment issues;

● details of any premises and other resources required;

● a financial evaluation of the proposal together with its impact on revenue and surplus, plus advice on the impact of possible alternative plans and sensitivity analyses in respect of key assumptions;

● contingency plans for managing adverse sensitivities;

● consideration of taxation and other legislative or regulatory issues;

● a five-year financial forecast for the proposal including a cash flow forecast and details of the impact on the University’s cash flow forecast for the financial years in question.

financial regulations contents - web viewarranging when deductions should begin or cease for staff;...

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